China’s AI model dazzles Silicon Valley

Chinese artificial intelligence company ChatGPT, which competes with ChatGPT, is attracting attention in Silicon Valley with its rapid rise, nearly outpacing leading US AI companies such as OpenAI and Meta.

DeepSeek is a Chinese AI startup Develop large open source language models (LLMs), according to the company’s website.

The company unveiled the R1, a specialized model designed to solve complex problems, on January 20, which “hit the global top 10 in performance,” was built much more quickly, with fewer and less powerful AI chips, and at a significant cost. Lower cost than other American models, According to the Wall Street Journal.

The latest version of the app was announced on the day of President Donald Trump’s inauguration, as another Chinese-owned social media app, TikTok, was making headlines over whether it would be banned in the United States.

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Yann LeCun, senior AI scientist at Meta, took to social media to talk about the app and its rapid success.

He pointed out In a post on topics, What struck him most about DeepSeek’s success was not the growing threat created by Chinese competition, but rather the value of keeping AI models open source, so anyone can benefit from them.

“This does not mean that Chinese AI is superior to the United States, but rather that open source models are superior to proprietary models,” Leccon explained.

“DeepSeek has leveraged open research and open source (like Meta’s PyTorch and Llama). They’ve come up with new ideas and built them on top of others’ work,” LeCun continued. “Because their work is published and open source, everyone can benefit from it. That’s the power of open research and open source.”

Just days after the latest version of DeepSeek was released, Meta CEO Mark Zuckerberg announced that his company plans to spend more than $60 billion in 2025 as it stays firm in the AI ​​space.

Meta’s latest move is aimed at strengthening the company’s position against its OpenAI rival And Google In the race to control artificial intelligence.

Big tech companies are investing tens of billions of dollars to develop AI infrastructure following the success of OpenAI’s ChatGPT.

Meta’s announcement came just days after Trump announced that OpenAI, SoftBank and Oracle would form a project called Stargate and invest $500 billion in AI infrastructure across the United States.

“Deepseek R1 is one of the most stunning and impressive achievements I have ever seen,” Marc Andreessen, a Silicon Valley venture capitalist who advises Trump, wrote in a post on X. the world.”

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“DeepSeek R1 is the Sputnik moment for AI,” Andreessen wrote in a commentary.

Alexander Wang, CEO of Scale AI, a San Francisco-based software company, also spoke about the technology and said that DeepSeek’s rapid success is a “wake-up call for America.”

“DeepSeek is a wake-up call for America, but it does not change the strategy,” Wang wrote in a post on X.

“The United States must out-innovate and race faster, as we have done in the entire history of AI” and “tighten export controls on chips so we can maintain the lead in the future,” Wang explained.

“Every major breakthrough in artificial intelligence has been American,” Wang said.

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The development of DeepSeek was led by Chinese hedge fund manager Liang Wenfeng, who has become the face of the country’s AI campaign, the newspaper wrote.

Experts told the magazine that DeepSeek’s technology still lags behind OpenAI And Google. However, it is a close competitor despite using fewer and less advanced chips, and in some cases skipping steps that US developers consider necessary.

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As of Saturday, the magazine reported that DeepSeek’s two models were ranked among the top 10 models in Chatbot Arena, a platform hosted by researchers from the University of California, Berkeley, for evaluating chatbot performance.

While DeepSeek’s main model is free, the newspaper reported that the company charges fees to users who connect their own applications to DeepSeek’s model and computing infrastructure.

FOX Business’ Breck Dumas and Reuters contributed to this report.